PetroLogistics awards McDermott FEED contract for 500 KTA Gulf Coast PDH Project

Written by Kevin Fuhrman
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McDermottInternational Inc. announced August 12 that it has been awarded a sizeable contract by PetroLogistics ll LLC to perform the front-end engineering design (FEED) services for a propane dehydrogenation (PDH) facility planned for theU.S. Gulf Coast. The company said that it defines a sizable contract as between $1 million and $50 million.

Under  contract, McDermott will assist in the development of a PDH plan tto be constructed on the U.S. Gulf Coast. The plant has a design basis of 500KTA.

“McDermottis pleased to be working with PetroLogistics II in the development of afacility that will support the growth of propylene in the U.S.,” said Mark Coscio, McDermott’s senior vice president for North, Central and South America.”We will pull from our vast expertise in engineering to complete theFEED.”

“The shale revolution has resulted in a significant decline in co-product propyleneproduction from the sources that historically supplied the majority of U.S.propylene: petroleum refineries and heavy feed ethylene crackers,” saidNathan Ticatch, PetroLogistics II president. “As a result, future growthin propylene demand will need to be supplied largely via on-purpose propanedehydrogenation. We are excited to work with McDermott to develop a facilitythat can supply a solution to this need.”

McDermott was selected due to its strength in engineering and extensive knowledge in executing fluid catalytic cracking projects. “We have had excellent experience working with McDermott in the past and we are pleased to be collaborating with them again on this very important project,” said David Lumpkins, PetroLogistics chairman.

This award was reflected in McDermott’s second quarter 2019 backlog.

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